A. Reporting to the shareholders on the accuracy of the accounts B. Establishment of internal controls C. Keeping proper accounting records D. Supplying information and explanations to the auditor The correct answer to the question: “Which of the following is NOT the responsibility of a company’s directors?” is “Reporting to the shareholders on the accuracy … Read more
A. International Accounting Standards Board B. International Federation of Accountants C. International Standards Board D. Auditing Practices Board The correct answer to the question: “International auditing standards are issued by the______________?” is “International Federation of Accountants”.
A. The auditor should express an opinion on financial statements. B. His opinion is no guarantee to future viability of business C. He is responsible for detection and prevention of frauds and errors in financial statements D. He should examine whether recognised accounting principle have been consistently The correct answer to the question: “Which of … Read more
A. Error of omission B. Error of commission C. Compensating error D. Error of principle The correct answer to the question: “A sale of Rs. 50.000 to A was entered as a sale to B. This is an example of____________?” is “Error of commission”.
A. Circulate representations to members B. Apply to the court to have the proposal removed C. Speak at the AGM/EGM where the removal is proposed D. Receive notification of the AGM/EGM where the removal is proposed The correct answer to the question: “When an auditor is proposed for removal from office, which one of the … Read more
A. Duty to report to the company’s bankers B. Duty to report to the members C. Duty to sign the audit report D. Duty to report on any violation of law The correct answer to the question: “Which one of the following is NOT a duty of the auditor?” is “Duty to report to the … Read more
A. The shareholders in a general meeting B. The managing director C. The board of directors in a board meeting D. The audit committee The correct answer to the question: “Assuming that it is not the first appointment of the auditor, who is responsible for the appointment of the auditor?” is “The shareholders in a … Read more
A. the directors B. the company’s creditors (payables) C. the company’s bank D. the shareholders The correct answer to the question: “The independent auditor’s primary responsibility is to______________?” is “the shareholders”.
A. Until the audit is complete B. Until the financial statements are complete C. Until the next AGM (Annual General Meeting) D. Until the directors remove them The correct answer to the question: “How long is the auditor’s term of office?” is “Until the next AGM (Annual General Meeting) “.
A. A matter is material only if it changes the audit report B. A matter is material if the auditor and the directors both decide that further work needs to be done in the area under question C. A matter is material only if it affects directors’ emoluments D. A matter is material if its … Read more